Vault Compensation Plan v3 - A Vault Compensation Support DAO to assure a better MakerDAO Governance

There is another one coming up? Any more info on this one and how to join?
Still don’t think that’s the way to go, but here we are a year later.

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We need to wait for the result of the arbitration and believe that there will be a fair judgment.

It’s a sin that MakerDao will carry forever. Web3 will never forget…

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I actually don’t understand. Other protocols have been distributing tokens generously to their users, while MakerDao refuses to compensate a cent…

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Why don’t you draw up some simple proposal and put it out for comment? The community will consider it and, if reasonable, may pass it. Passing blame on the DAO for the compensation advocates’ failure to convince people that their recommended path was the “right” one is unfair. I’d say come up with another matrix and release it for review.

I don’t understand neither why they don’t communicate, I tried to contact the CEO on LinkedIn and a lot of their employees, they read my message but didn’t answer. Nobody from the administration want to talk, are they hiding something?

The community voted Yes to compensate the victims, and yet nothing has been done… our losses are amounts in ETH, and this loss is higher and higher every week…
My loss is approximately calculated at 700k$ right now.

I really think that we can retry a compensation poll, now that ETH is much higher, i feel that the community/voters will welcome this poll more positively than early 2020 when everything was going badly for everyone.

@MakerMan @LongForWisdom can you do something? We need a voice, I think at this point I’m ready to pay any service fee to recover my money, if needed.

I can’t personally. Governance voted against it once and that means that I shouldn’t spend DAO-funded time on it. I’m afraid I have enough work to do as it is to want to spend my free time on it (not to mention it’s something of a conflict of interest for me to be paid by outside parties to produce governance proposals.)

If anyone wants to work on a new proposal they are welcome to do so. My contribution would need to be limited to advising those involved about how to navigate the Maker governance processes (something I currently do for anyone that asks).

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I don’t understand neither why they don’t communicate, I tried to contact the CEO on LinkedIn and a lot of their employees, they read my message but didn’t answer

The Foundation does not run MakerDAO anymore. They will be dissolved soon. The “people in charge” are MKR holders.

My loss is approximately calculated at 700k$ right now.

I hope you realize that the compensation amount (if you expect it to be the ETH value of what you lost) being higher also makes it less likely for a proposal to pass?

I am sorry for your losses but I think it’s good to keep your expectations in check about what could happen.

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That sounds reasonable but you should probably temper your expectations. The calculations for what people allegedly “lost” isn’t simply what one may have had in his or her vault; you have to deduct Dai drawn against it PLUS the actual value of Eth at that time (not today). Only then can one get a fair assessment of their purported losses at the time of alleged harm. Any other way would be to offer the individuals a windfall, which the DAO would likely not support.

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I am in and probably many more if we properly start preparing a signal request here in the forum.

Best to use the templates provided by previous poll starters for the compensation plan.
Problem of course is that Maker Voters have more and more power. Still we evidently won the first compensation plan until everything went under.

But as others say, we have to limit our expectations. Then again all of us are doing that since more than a year now.

As a victim, I don’t think we should limit our expectations, because we were in an unfair game from the beginning, and of course all of this is getting better. We don’t need to limit our expectations, we just need to make reasonable demands.

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I think you need to limit your expectations because it only takes a few whales to torpedo the whole thing.

Well, that’s fine. But one thing to reiterate – and this goes to a question of fairness – is that if the next comp proposal gets approved and paid out, those who would receive payment should be barred from participating in or joining the class action case. Otherwise, they set themselves up for potential windfalls, which is the opposite of “fair”.

Note also that a lot of people, including myself, would dispute the notion of unfairness here. MKR holders also lost substantial amounts of money due to minting to cover the bad debt and were victims of the events of that day too. For example, the MKR/ETH ratio has still not recovered to pre-BT times.

In general, if you’re at the cutting edge of fintech, it’s not going to be plain sailing. Any compensation would come from generosity, not obligations, of MKR holders.

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Just to put some numbers in perspective based on current prices (please correct me if anything is incorrect):

Assuming about 62,892.93 ETH were liquidated in the zero bid auctions, and assuming compensating at 24.67% (theoretical maximum auction yield), that would be 15,515.68 ETH or 9,724 MKR or about $50 million at current prices. The MKR market cap is currently about $4.66 billion. So total compensation would be about 1% of the MKR market cap assuming the most generous 24.67% compensation percentage. To me this seems like it would not be a big deal for the Maker community to come up with this amount in some way to finally put the Black Thursday issue to bed.

@AstronautThis Agreed, MKR holders have previously signaled a generous intent by voting to compensate and it would be indeed generous to follow though with the act of compensation. Last compensation vote failed with only 38 unique wallets voting with most votes from only a handful of MKR whales. If there is ever another future compensation vote, perhaps times will be different and compensation action will be passed by a margin of one or two bighearted MKR whales.

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@ejbarraza You know there are mkr whales, so the community is not decentralized as we think.

@Tosh9.0 Okay, this is another discussion about fairness: eth holders mortgage eth and cast dai. Why does eth mortgager have no right to vote? We have to think about who cast dai. Is it an mkr holder?

@AstronautThis Responsibilities match obligations. Generosity is not a charity for victims to request compensation. I reiterate my wishes: justice in the legal sense,fairness in the DAO.

I suspect most people here do not agree with this.
Since ~Dec2020 we have been postponing burning to build a healthy Surplus buffer, now sitting at about 30m usd (after months!)

50m is a huge amount of money.

I just don’t see how one could even imagining asking for reimbursement at current prices. That seems crazy. But maybe it’s just me.

I 100% fully agree with this.

  1. MakerDAO lost money and had to mint new MKR tokens to compensate the losses.
  2. MKR holders lost money because their MKR dropped in value from 650usd to 250usd.
  3. Vault holders lost money because they were liquidated 100%.

So all of you and all of ‘us’ lost money. And this is what (might) happens when you experiment with new protocols, potentially containing bugs and exposed to systemic risk.

Just to be more clear: even if we have the best devs, and they follow the best practices in the industry (audits, formal verification, etc), black swan events could (and likely will!) happen again. Every participant in the protocol should know this.

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Reimbursement should definitely be calculated at the point of failure rather than after a huge bull run.

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Let’s also not lose sight of the fact that current MKR holders may not be the same ones from then. My sympathies are extended, but I would feel like my pockets were picked.

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